“I expect a slowdown in new mortgage applications over the coming months, with first-timers and upsizers sitting tight and waiting to see what happens,” he added.
In Mitchell’s view, the base rate will peak at 6.5 per cent in April 2024, and this in turn will bring mortgage interest rates into the high sixes or low sevens.
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“Mortgages in 2024 will be unrecognisable from those in 2022. People who have time remaining on their ultra-low rates need to make lifestyle adjustments, as they know what is coming.
“Many will be looking at their RS Audi and thinking an Audi will now do. Unpleasant decisions lie ahead. The fact that withdrawals were so high highlights the pressure households are under,” Mitchell said.
jane.matthews@ft.com
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